What is the Stock Market Made Of?
Stocks are made up of different parts. There's the company itself, the shares of the company, the price at which the shares are traded, and the value of those shares.
Why Do People Invest In Stocks?
Many people use the stock market as an investment strategy because it allows them to make money by buying low and selling high. This means that when the share prices go down, investors will sell their shares and make a profit. Conversely, when the share prices go up, investors will buy more shares and make a profit too.
How Does the Stock Market Work?
The stock market is made up of companies that produce goods and services. These companies issue shares of stock so that anyone who wants to can own part of the company. Companies also issue bonds, which are similar to loans. Investors purchase these bonds with the expectation that the interest payments will cover the cost of borrowing.
How Can I Buy Stocks?
You can buy stocks through an online brokers and banks. Brokers offer investors access to the stock market by providing trading platforms where people can buy and sell stocks. They charge fees for each trade, but some brokers waive commissions for certain trades.
How Much Should You Spend?
It depends on how much you want to spend. If you want to start investing with just ₹100, then you should consider buying shares of companies that pay dividends. Dividends are regular payments made by a company to its shareholders. Companies usually pay dividends because they need to return cash to shareholders.